XYZ Appliances Pvt. Ltd. is carrying on the business of manufacturing and trading of kitchen appliances at Sadar Bazar, Delhi. X, Y and Z are the three directors of the company who also hold shares of the company in the
CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2024
XYZ Appliances Pvt. Ltd. is carrying on the business of manufacturing and trading of kitchen appliances at Sadar Bazar, Delhi. X, Y and Z are the three directors of the company who also hold shares of the company in the ratio of 35: 35: 30. The business of the company is flourishing and the company has opened its branches in the cities of Noida, Gurgaon and Faridabad. In order to protect their personal interests, X, Y and Z propose that any amendment in the Articles of Association of the company should be made only with the approval of all the shareholders of the company. They approach M, a practicing company secretary to seek his advice on the alteration of Articles of Association of the company only with the approval of all the shareholders. M advises them suitably. XYZ Appliances Pvt. Ltd. receives an export order from a company based at France. In order to export the goods, the company requires Importer Exporter Code (IEC). The directors of the company again approach M who explains them the procedure to apply for IEC on the DGFT portal. After getting the IEC in the name of the company, the export order is successfully completed by the company. A company based at Japan approaches XYZ Appliances Pvt. Ltd. to form an alliance for sharing of latest technical advancements in the industry for mutual benefit of both the companies. The directors of XYZ Appliances Pvt. Ltd. discuss on the objectives of the foreign collaboration. Thereafter, a technical collaboration is made between both the companies. The scale of operations of XYZ Appliances Pvt. Ltd. increases multifold and the directors intend to convert it into a public limited company. With the professional assistance of M, the company is converted into a public limited company. M also advises on the post conversion requirements to be arranged by XYZ Appliances Ltd. Y goes on a business trip to Singapore and meets his friend John, who is a director in a company based at Singapore in the name of JSS Realtech Pte. Ltd. JSS Realtech Pte. Ltd. is engaged in the development of townships, construction of residential or commercial premises, roads or bridges for selling or leasing. John advises Y that the company, XYZ Appliances Ltd. may invest in JSS Realtech Pte. Ltd. to earn more profits. On return, Y informs X and Z that XYZ Appliances Ltd. may invest in JSS Realtech Pte. Ltd., engaged in real estate activity at Singapore. However, Z is of the view that the Overseas Direct Investment (ODI) in a foreign entity engaged in real estate activity is prohibited. In view of the above, answer the following: What are the post conversion requirements to be arranged by XYZ Appliances Ltd. after conversion from a private limited company to a public limited company ?
Answer & Explanation:
The following are the post conversion requirements to be arranged by XYZ Appliances Ltd. after conversion from a private limited company to a public limited company: Once the company gets converted into public limited company, it needs to intimate and inform some authorities, persons as required by law. Following are the major compliance that needs to be followed by the company after conversion: A fresh PAN card has to be applied to reflect the conversion done. The bank account details of the company need to be updated. Proper intimation needs to be given to tax authorities and other regulatory authorities about the conversion. Every alteration made in the memorandum or articles of a company shall be noted in every copy of the memorandum or articles, as the case may be. The company's name and its public status should be clearly displayed in compliance with Section 15(1) of the Companies Act, 2013. A fresh rubber stamp is required to be arranged with the new name of the Company. Paint or affix or print, new name along with the former name so changed on the outside of every office. The company's new status needs to be visibly affixed at all locations and on all relevant documents, as mandated by Section 12 of the Companies Act, 2013. This includes legal documents, company seals, business letters, and promotional materials. Inform about the conversion from private limited to public limited to various Government authorities like GST department, Regional Provided Fund department, Income tax department, etc. Intimate all the banks where the current accounts of the company are opened about the conversion with regard to change in the name and status of the Account holder. Ensure that the company has a minimum of 7 members (if it had fewer members earlier). Ensure compliance with the minimum number of directors required for a public company, which is 3 directors Ensure the dematerialization of shares
Topics: Companies Act, 2013
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